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<p style="margin: 0pt"></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES</b></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i><u>Nature of Business</u></i></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">American Church Mortgage Company, a Minnesota
corporation, was incorporated on May 27, 1994. The Company is engaged primarily in the business of making mortgage
loans to churches and other nonprofit religious organizations throughout the United States, on terms established for individual
organizations.</p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i><u>Accounting Estimates</u></i></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Management uses estimates and assumptions in
preparing these financial statements in accordance with accounting principles generally accepted in the United States of America.
Those estimates and assumptions affect the reported amounts of assets and liabilities, the disclosure of contingent assets and
liabilities, and the reported revenues and expenses. Actual results could differ from those estimates. The most sensitive estimates
relate to the realizability of the mortgage loans receivable, the valuation of the bond portfolio and the valuation of real estate
held for sale. It is at least reasonably possible that these estimates could change in the near term and that the effect of the
change, if any, may be material to the financial statements.</p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0"><i><u>Concentration of Credit Risk</u></i></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0">The Company's loans have been granted to churches and other non-profit
religious organizations. The ability of the Company’s debtors to honor their contracts is dependent on member contributions
and the involvement in the church or organization of its senior pastor.</p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i><u>Cash and Cash Equivalents</u></i></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company considers all highly liquid debt
instruments purchased with maturities of three months or less to be cash equivalents.</p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company maintains accounts primarily at
two financial institutions. At times throughout the year, the Company’s cash and equivalents balances may exceed amounts
insured by the Federal Deposit Insurance Corporation. Cash in money market funds is not federally insured. The Company had $219,899
and $974,346 in a money market fund account at March 31, 2019 and December 31, 2018, respectively. The Company has not experienced
any losses in such accounts.</p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i><u>Bond Portfolio</u></i></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company accounts for the bond portfolio
under the Accounting Standards Codification (ASC) 320, Investments-Debt and Equity Securities. The Company classifies the bond
portfolio as “available-for sale” and measures the portfolio at fair value. While the bonds are generally held until
contractual maturity, the Company classifies them as available for sale as the bonds may be used to repay secured investor certificates
or provide additional liquidity or working capital in the short term. The Company has classified $219,000 and $167,000 in bonds
as current assets as of March 31, 2019 and December 31, 2018, respectively, based on management’s estimates for liquidity
requirements and contractual maturities of certain bonds maturing in 2020 and 2019, respectively.</p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i><u>Allowance for Loan Losses on Mortgage
Loans Receivable</u></i></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company records mortgage loans receivable
at estimated net realizable value, which is the unpaid principal balances of the mortgage loans receivable, less the allowance
for loan losses on mortgage loans receivable and less deferred loan origination fees. The Company’s loan policy provides
an allowance for estimated uncollectible loans based on an evaluation of the current status of the loan portfolio with application
of reserve percentages to specific loans based on payment status. This policy reserves for principal amounts outstanding on a specific
loan if cumulative interruptions occur in the normal payment schedule of the loan, therefore, the Company recognizes a provision
for losses and an allowance for the outstanding principal amount of the loan in the Company’s portfolio if the amount is
in doubt of collection. Additionally, no interest income is recognized on impaired loans that are declared to be in default and
are in the foreclosure process. At March 31, 2019, the Company reserved $1,589,744 for sixteen mortgage loans. Ten of these loans
are three or more mortgage payments in arrears of which three are declared to be in default and one is in the foreclosure process.
The total principal amount of these sixteen loans totals approximately $6,494<font style="font-size: 8pt"> </font>,000 at
March 31, 2019. At December 31, 2018, the Company reserved $1,672,003 for seventeen mortgage loans. Eleven of these loans are three
or more mortgage payments in arrears of which three are declared to be in default and two are in the foreclosure process. The total
principal amount of these seventeen loans totals approximately $6,893<font style="font-size: 8pt"> </font>,000 at December
31, 2018.</p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">A summary of transactions in the allowance
for mortgage loans for the period ended March 31, 2019 is as follows:</p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: top; background-color: rgb(204,238,255)">
<td style="width: 63%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; layout-grid-mode: line">Balance at December 31, 2018</td>
<td style="width: 3%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; layout-grid-mode: line"> </td>
<td style="width: 34%; padding-right: 7.9pt; padding-left: 5.4pt; text-align: right; layout-grid-mode: line">$  1,672,003</td></tr>
<tr style="vertical-align: top; background-color: White">
<td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; layout-grid-mode: line">Provision for additional losses</td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; layout-grid-mode: line"> </td>
<td style="padding-right: 7.9pt; padding-left: 5.4pt; text-align: right; layout-grid-mode: line">18,278</td></tr>
<tr style="vertical-align: top; background-color: rgb(204,238,255)">
<td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; layout-grid-mode: line">Proceeds from sale of property held for sale</td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; layout-grid-mode: line"> </td>
<td style="padding-right: 7.9pt; padding-left: 5.4pt; text-align: right; layout-grid-mode: line"><u>(100,537)</u></td></tr>
<tr style="vertical-align: top; background-color: White">
<td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; layout-grid-mode: line">Balance at March 31, 2019</td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; layout-grid-mode: line"> </td>
<td style="padding-right: 7.9pt; padding-left: 5.4pt; text-align: right; layout-grid-mode: line">$  <font style="text-underline-style: double"><u>1,589,744</u></font></td></tr>
</table>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The total impaired loans, which are loans that
are in the foreclosure process or are declared to be in default, were approximately $1,352,000 and $1,498,000 at March 31, 2019
and December 31, 2018, respectively, which the Company believes are adequately secured by the underlying collateral and the allowance
for mortgage loans. Approximately $744,000 of the Company’s allowance for mortgage loans was allocated to these loans at
March 31, 2019. Approximately $833,000 of the Company’s allowance for mortgage loans was allocated to impaired loans at December
31, 2018.</p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company will declare a loan to be in default
and will place the loan on non-accrual status when the following thresholds have been met: (i) the borrower has missed three consecutive
mortgage payments; (ii) the borrower has not communicated to the Company any legitimate reason for delinquency in its payments
to the Company and has not arranged for the re-continuance of payments; (iii) lines of communication to the borrower have broken
down such that any reasonable prospect of rehabilitating the loan and return of regular payments is gone.</p>
<p style="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company’s policies on payments received
and interest accrued on non-accrual loans are as follows: (i) The Company will accept payments on loans that are currently on non-accrual
status when a borrower has communicated to us that they intend to meet their mortgage obligations. A payment made on a non-accrual
loan is considered a good faith deposit as to the intent to resume their mortgage payment obligation. This good faith deposit is
credited back to interest first then principal as stated in the mortgage loan documentation. (ii) A letter outlining the re-payment
terms or the restructure terms (if any) of the loan is provided to the borrower. This letter will be signed by the Senior Pastor
and either officers or board members of the borrower. This letter resumes the obligation to make payments on non-accrual loans.
(iii) The borrower must meet all its payment obligations for the next 120 days without interruption in order to be removed from
non-accrual status. No interest income was recognized on non-accrual loans as of March 31, 2019.</p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">When a loan is declared in default according
to the Company’s policy or deemed to be doubtful of collection, the loan committee of the Advisor to the Company will direct
the staff to charge-off the uncollectable receivables.</p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Loans totaling approximately $2,906,000 and
$2,853,000 exceeded 90 days past due but continued to accrue interest as of March 31, 2019 and December 31, 2018, respectively.
The Company believes that continued interest accruals are appropriate because the loans are well secured, not deemed to be in technical
default and the Company is actively pursuing collection of past due payments.</p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i><u>Real Estate Held for Sale</u></i></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">As of March 31, 2019, the Company had one
acquired one property located in Bethel, Ohio through the foreclosure process with an outstanding balance of $112,515 and one
property located in Pine Bluff, Arkansas acquired via deed in lieu of foreclosure with an outstanding balance totaling
balance totaling $225,872. The Church is still occupying the Arkansas property and paying rent while trying to either sell the
building or obtain refinancing. The Company records real estate held for sale at the estimated fair value, which is net of
the expected expenses related to the sale of the real estate. The fair value of our real estate held for sale, which
represents the carrying value, is $27,925 as of March 31, 2019.</p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company sold one property for the period
ended March 31, 2019 for approximately $61,000 which approximates the carrying value.</p>
<p style="font: italic 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: italic 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Carrying Value of Long-Lived Assets</u></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company tests long-lived assets or asset
groups for recoverability when events or changes in circumstances indicate that the carrying amount may not be recoverable. Circumstances
which could trigger a review include, but are not limited to: significant decreases in the market price of the asset; significant
adverse changes in the business climate or legal factors; accumulation of costs significantly in excess of the amount originally
expected for the acquisition or construction of the asset; current period cash flow or operating losses combined with a history
of losses or a forecast of continuing losses associated with the use of the asset; and current expectation that the asset will
more likely than not be sold or disposed of significantly before the end of the estimated useful life.</p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Recoverability is assessed based on the carrying
amount of the asset compared to the sum of the undiscounted cash flows expected to result from the use and the eventual disposal
of the asset, as well as specific appraisal in certain instances. An impairment loss is recognized when the carrying amount is
deemed not recoverable and exceeds fair value as determined through various valuation techniques including, but not limited to,
discounted cash flow models, quoted market values, and third party independent appraisals.</p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i> </i></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i><u>Revenue Recognition</u></i></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Interest income on mortgage loans receivable
and the bond portfolio is recognized as earned per the terms of the specific asset. Other income included with interest represents
cash received for loan origination fees, which are recognized over the life of the loan as an adjustment to the yield on the loan.</p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">As of January 1, 2018, the Company adopted
ASU 2014-09 <i>Revenue from Contracts with Customers - Topic 606</i> and all subsequent ASUs that modified ASC 606. The Company
has elected to apply the ASU and all related ASUs using the modified retrospective implementation method. The implementation of
the guidance had no material impact on the measurement or recognition of revenue of prior periods.</p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.25in"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company generally fully satisfies its performance
obligations on its contracts with customers as services are rendered and the transaction prices are typically fixed; charged either
on a periodic basis or based on activity. Because performance obligations are satisfied as services are rendered and the transaction
prices are fixed, there is little judgment involved in applying Topic 606 that significantly affects the determination of the amount
and timing of revenue from contracts with customers. The main types of revenue contracts included in non-interest income within
the consolidated statements of operations are as follows:</p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; color: #1F497D"><i> </i></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i><u>Gain Losses on Sale of OREO</u></i></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.25in; text-align: justify"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company records a gain or loss from the
sale of OREO when control of the property transfers to the buyer, which generally occurs at the time of an executed deed. When
the Company finances the sale of OREO to the buyer, the Company assesses whether the buyer is committed to perform their obligations
under the contract and whether collectability of the transaction price is probable. Once these criteria are met, the OREO asset
is derecognized and the gain or loss on sale is recorded upon the transfer of control of the property to the buyer. In determining
the gain or loss on the sale, the Company adjusts the transaction prices and related gain (loss) on sale if a significant financing
component is present.</p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b><i> </i></b></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i><u>Deferred Financing Costs</u></i></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company defers the costs related to obtaining
financing. These costs are amortized over the life of the financing using the straight line method, which approximates the effective
interest method.</p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i> </i></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i><u>Income (Loss) Per Common Share</u></i></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">No adjustments were made to income (loss) for
the purpose of calculating earnings per share, as there were no potential dilutive shares outstanding.</p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i><u>Recent Accounting Pronouncements</u></i></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i> </i></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In 2016 the FASB issued ASU 2016-13,
“Financial Instruments-Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments.” ASU 2016-13
is intended to provide financial statement users with more decision-useful information about the expected credit losses on financial
instruments and other commitments to extend credit. For public entities, ASU 2016-13 is effective for fiscal years beginning after
December 15, 2019, including interim periods within those fiscal years. The Company has not yet fully evaluated the potential effects
of adopting ASU 2016-13 on the Company’s results of operations, financial position or cash flows.</p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i><u>Recent Accounting Pronouncements –
Adopted</u></i></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i> </i></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In the first quarter of 2018, the Company adopted
Accounting Standards Update (ASU) 2014-09, <i>Revenue from Contracts with Customers (Topic 606).  </i>Under the ASU, revenue
is recognized when a customer obtains control of promised services in an amount that reflects the consideration the entity expects
to receive in exchange for those services. In addition, the standard requires disclosure of the nature, amount, timing, and uncertainty
of revenue and cash flows arising from contracts with customers.  The Company applied the five-step method outlined in
the ASU to all revenue streams scoped-in by the ASU and elected the modified retrospective implementation method. Substantially
all of the Company’s interest income and certain non-interest income were not impacted by the adoption of this ASU because
either the revenue from those contracts with customers is covered by other guidance in U.S. GAAP or the revenue recognition outcomes
were similar to our current revenue recognition practices. We reviewed non-interest sources of income and related contracts to
document the impact of the new standard on our service offerings that are in the scope of the ASU including gains (losses) on sale
of OREOs. Upon our analysis we concluded that the adoption of the ASC 606 did not change the timing and pattern of revenue recognition
related to scoped in non-interest income source and only required additional disclosures. In addition, we reviewed, and where necessary,
enhanced our business processes, systems and controls to support recognition and disclosures under the new standard. The additional
disclosures required by the ASU have been included above.</p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i> </i></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i> </i></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i> </i></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i> </i></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i> </i></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i><u>Subsequent Events</u></i></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i> </i></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company has evaluated events and transactions
through the date the financial statements were available to be issued. No material events or transactions occurred in the time
period referenced above requiring adjustment to or disclosure in the March 31, 2019 financial statements.</p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<hr class="msocomoff" align="left" size="1" style="width: 33%" />
<p style="margin: 0pt"></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES</b></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i><u>Nature of Business</u></i></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">American Church Mortgage Company, a Minnesota
corporation, was incorporated on May 27, 1994. The Company was organized to engage primarily in the business of making mortgage
loans to churches and other nonprofit religious organizations throughout the United States, on terms established for individual
organizations.</p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i><u>Accounting Estimates</u></i></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Management uses estimates and assumptions in
preparing these financial statements in accordance with accounting principles generally accepted in the United States of America.
Those estimates and assumptions affect the reported amounts of assets and liabilities, the disclosure of contingent assets and
liabilities, and the reported revenues and expenses. Actual results could differ from those estimates. The most sensitive estimates
relate to the realizability of the mortgage loans receivable, the valuation of the bond portfolio and the valuation of real estate
held for sale. It is at least reasonably possible that these estimates could change in the near term and that the effect of the
change, if any, may be material to the financial statements.</p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i><u>Bond Portfolio</u></i></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company accounts for the bond portfolio
under the Accounting Standards Codification (ASC) 320, Investments-Debt and Equity Securities. The Company classifies the bond
portfolio as “available-for sale” and measures the portfolio at fair value. While the bonds are generally held until
contractual maturity, the Company classifies them as available for sale as the bonds may be used to repay secured investor certificates
or provide additional liquidity or working capital in the short term. The Company has classified $219,000 and $167,000 in bonds
as current assets as of March 31, 2019 and December 31, 2018, respectively, based on management’s estimates for liquidity
requirements and contractual maturities of certain bonds maturing in 2020 and 2019, respectively.</p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i><u>Allowance for Loan Losses on Mortgage
Loans Receivable</u></i></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company records mortgage loans receivable
at estimated net realizable value, which is the unpaid principal balances of the mortgage loans receivable, less the allowance
for loan losses on mortgage loans receivable and less deferred loan origination fees. The Company’s loan policy provides
an allowance for estimated uncollectible loans based on an evaluation of the current status of the loan portfolio with application
of reserve percentages to specific loans based on payment status. This policy reserves for principal amounts outstanding on a specific
loan if cumulative interruptions occur in the normal payment schedule of the loan, therefore, the Company recognizes a provision
for losses and an allowance for the outstanding principal amount of the loan in the Company’s portfolio if the amount is
in doubt of collection. Additionally, no interest income is recognized on impaired loans that are declared to be in default and
are in the foreclosure process. At March 31, 2019, the Company reserved $1,589,744 for sixteen mortgage loans. Ten of these loans
are three or more mortgage payments in arrears of which three are declared to be in default and one is in the foreclosure process.
The total principal amount of these sixteen loans totals approximately $6,494<font style="font-size: 8pt"> </font>,000 at
March 31, 2019. At December 31, 2018, the Company reserved $1,672,003 for seventeen mortgage loans. Eleven of these loans are three
or more mortgage payments in arrears of which three are declared to be in default and two are in the foreclosure process. The total
principal amount of these seventeen loans totals approximately $6,893<font style="font-size: 8pt"> </font>,000 at December
31, 2018.</p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">A summary of transactions in the allowance
for mortgage loans for the period ended March 31, 2019 is as follows:</p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: top; background-color: rgb(204,238,255)">
<td style="width: 63%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; layout-grid-mode: line">Balance at December 31, 2018</td>
<td style="width: 3%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; layout-grid-mode: line"> </td>
<td style="width: 34%; padding-right: 7.9pt; padding-left: 5.4pt; text-align: right; layout-grid-mode: line">$  1,672,003</td></tr>
<tr style="vertical-align: top; background-color: White">
<td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; layout-grid-mode: line">Provision for additional losses</td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; layout-grid-mode: line"> </td>
<td style="padding-right: 7.9pt; padding-left: 5.4pt; text-align: right; layout-grid-mode: line">18,278</td></tr>
<tr style="vertical-align: top; background-color: rgb(204,238,255)">
<td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; layout-grid-mode: line">Proceeds from sale of property held for sale</td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; layout-grid-mode: line"> </td>
<td style="padding-right: 7.9pt; padding-left: 5.4pt; text-align: right; layout-grid-mode: line"><u>(100,537)</u></td></tr>
<tr style="vertical-align: top; background-color: White">
<td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; layout-grid-mode: line">Balance at March 31, 2019</td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; layout-grid-mode: line"> </td>
<td style="padding-right: 7.9pt; padding-left: 5.4pt; text-align: right; layout-grid-mode: line">$  <font style="text-underline-style: double"><u>1,589,744</u></font></td></tr>
</table>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The total impaired loans, which are loans that
are in the foreclosure process or are declared to be in default, were approximately $1,352,000 and $1,498,000 at March 31, 2019
and December 31, 2018, respectively, which the Company believes are adequately secured by the underlying collateral and the allowance
for mortgage loans. Approximately $744,000 of the Company’s allowance for mortgage loans was allocated to these loans at
March 31, 2019. Approximately $833,000 of the Company’s allowance for mortgage loans was allocated to impaired loans at December
31, 2018.</p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company will declare a loan to be in default
and will place the loan on non-accrual status when the following thresholds have been met: (i) the borrower has missed three consecutive
mortgage payments; (ii) the borrower has not communicated to the Company any legitimate reason for delinquency in its payments
to the Company and has not arranged for the re-continuance of payments; (iii) lines of communication to the borrower have broken
down such that any reasonable prospect of rehabilitating the loan and return of regular payments is gone.</p>
<p style="font: 11pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company’s policies on payments received
and interest accrued on non-accrual loans are as follows: (i) The Company will accept payments on loans that are currently on non-accrual
status when a borrower has communicated to us that they intend to meet their mortgage obligations. A payment made on a non-accrual
loan is considered a good faith deposit as to the intent to resume their mortgage payment obligation. This good faith deposit is
credited back to interest first then principal as stated in the mortgage loan documentation. (ii) A letter outlining the re-payment
terms or the restructure terms (if any) of the loan is provided to the borrower. This letter will be signed by the Senior Pastor
and either officers or board members of the borrower. This letter resumes the obligation to make payments on non-accrual loans.
(iii) The borrower must meet all its payment obligations for the next 120 days without interruption in order to be removed from
non-accrual status. No interest income was recognized on non-accrual loans as of March 31, 2019.</p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">When a loan is declared in default according
to the Company’s policy or deemed to be doubtful of collection, the loan committee of the Advisor to the Company will direct
the staff to charge-off the uncollectable receivables.</p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Loans totaling approximately $2,906,000 and
$2,853,000 exceeded 90 days past due but continued to accrue interest as of March 31, 2019 and December 31, 2018, respectively.
The Company believes that continued interest accruals are appropriate because the loans are well secured, not deemed to be in technical
default and the Company is actively pursuing collection of past due payments.</p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i><u>Real Estate Held for Sale</u></i></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">As of March 31, 2019, the Company had one acquired
one property located in Bethel, Ohio through the foreclosure process with an outstanding balance of $112,515 and one property located
in Pine Bluff, Arkansas acquired via deed in lieu of foreclosure with an outstanding balance totaling balance totaling $225,872.
The Church is still occupying this property and paying rent while trying to either sell the building or obtain refinancing. The
Company records real estate held for sale at the estimated fair value, which is net of the expected expenses related to the sale
of the real estate. The fair value of our real estate held for sale, which represents the carrying value, is $27,925 as of March
31, 2019.</p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company sold one property for the period
ended March 31, 2019 for approximately $61,000 which approximates the carrying value.</p>
<p style="font: italic 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><u>Carrying Value of Long-Lived Assets</u></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company tests long-lived assets or asset
groups for recoverability when events or changes in circumstances indicate that the carrying amount may not be recoverable. Circumstances
which could trigger a review include, but are not limited to: significant decreases in the market price of the asset; significant
adverse changes in the business climate or legal factors; accumulation of costs significantly in excess of the amount originally
expected for the acquisition or construction of the asset; current period cash flow or operating losses combined with a history
of losses or a forecast of continuing losses associated with the use of the asset; and current expectation that the asset will
more likely than not be sold or disposed of significantly before the end of the estimated useful life.</p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Recoverability is assessed based on the carrying
amount of the asset compared to the sum of the undiscounted cash flows expected to result from the use and the eventual disposal
of the asset, as well as specific appraisal in certain instances. An impairment loss is recognized when the carrying amount is
deemed not recoverable and exceeds fair value as determined through various valuation techniques including, but not limited to,
discounted cash flow models, quoted market values, and third party independent appraisals.</p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i><u>Revenue Recognition</u></i></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Interest income on mortgage loans receivable
and the bond portfolio is recognized as earned per the terms of the specific asset. Other income included with interest represents
cash received for loan origination fees, which are recognized over the life of the loan as an adjustment to the yield on the loan.</p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">As of January 1, 2018, the Company adopted
ASU 2014-09 <i>Revenue from Contracts with Customers - Topic 606</i> and all subsequent ASUs that modified ASC 606. The Company
has elected to apply the ASU and all related ASUs using the modified retrospective implementation method. The implementation of
the guidance had no material impact on the measurement or recognition of revenue of prior periods.</p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify; text-indent: 0.25in"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company generally fully satisfies its performance
obligations on its contracts with customers as services are rendered and the transaction prices are typically fixed; charged either
on a periodic basis or based on activity. Because performance obligations are satisfied as services are rendered and the transaction
prices are fixed, there is little judgment involved in applying Topic 606 that significantly affects the determination of the amount
and timing of revenue from contracts with customers. The main types of revenue contracts included in non-interest income within
the consolidated statements of operations are as follows:</p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i><u>Gain Losses on Sale of OREO</u></i></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0 0 0 0.25in; text-align: justify"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company records a gain or loss from the
sale of OREO when control of the property transfers to the buyer, which generally occurs at the time of an executed deed. When
the Company finances the sale of OREO to the buyer, the Company assesses whether the buyer is committed to perform their obligations
under the contract and whether collectability of the transaction price is probable. Once these criteria are met, the OREO asset
is derecognized and the gain or loss on sale is recorded upon the transfer of control of the property to the buyer. In determine
the gain or loss on the sale, the Company adjusts the transaction prices and related gain (loss) on sale if a significant financing
component is present.</p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i><u>Deferred Financing Costs</u></i></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company defers the costs related to obtaining
financing. These costs are amortized over the life of the financing using the straight line method, which approximates the effective
interest method.</p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i><u>Income (Loss) Per Common Share</u></i></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">No adjustments were made to income (loss) for
the purpose of calculating earnings per share, as there were no potential dilutive shares outstanding.</p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i><u>Recent Accounting Pronouncements</u></i></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i> </i></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In June, 2016 the FASB issued ASU 2016-13,
“Financial Instruments-Credit Losses (Topic 326), Measurement of Credit Losses on Financial Instruments.” ASU 2016-13
is intended to provide financial statement users with more decision-useful information about the expected credit losses on financial
instruments and other commitments to extend credit. For public entities, ASU 2016-13 is effective for fiscal years beginning after
December 15, 2019, including interim periods within those fiscal years. The Company has not yet fully evaluated the potential effects
of adopting ASU 2016-13 on the Company’s results of operations, financial position or cash flows.</p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i><u>Subsequent Events</u></i></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i> </i></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company has evaluated events and transactions
through the date the financial statements were available to be issued. No material events or transactions occurred in the time
period referenced above requiring adjustment to or disclosure in the March 31, 2019 financial statements.</p>
<table cellspacing="0" cellpadding="0" style="font: 12pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<tr style="vertical-align: top; background-color: rgb(204,238,255)">
<td style="width: 63%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; layout-grid-mode: line">Balance at December 31, 2018</td>
<td style="width: 3%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; layout-grid-mode: line"> </td>
<td style="width: 34%; padding-right: 7.9pt; padding-left: 5.4pt; text-align: right; layout-grid-mode: line">$  1,672,003</td></tr>
<tr style="vertical-align: top; background-color: White">
<td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; layout-grid-mode: line">Provision for additional losses</td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; layout-grid-mode: line"> </td>
<td style="padding-right: 7.9pt; padding-left: 5.4pt; text-align: right; layout-grid-mode: line">18,278</td></tr>
<tr style="vertical-align: top; background-color: rgb(204,238,255)">
<td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; layout-grid-mode: line">Proceeds from sale of property held for sale</td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; layout-grid-mode: line"> </td>
<td style="padding-right: 7.9pt; padding-left: 5.4pt; text-align: right; layout-grid-mode: line"><u>(100,537)</u></td></tr>
<tr style="vertical-align: top; background-color: White">
<td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify; layout-grid-mode: line">Balance at March 31, 2019</td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right; layout-grid-mode: line"> </td>
<td style="padding-right: 7.9pt; padding-left: 5.4pt; text-align: right; layout-grid-mode: line">$  <font style="text-underline-style: double"><u>1,589,744</u></font></td></tr>
</table>
18278
-100537
219899
974346
219000
167000
1589744
1672003
6494000
6893000
744000
833000
1352000
1498000
2906000
2853000
338387
327925
340659
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i><u>Recent Accounting Pronouncements –
Adopted</u></i></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i> </i></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In the first quarter of 2018, the Company adopted
Accounting Standards Update (ASU) 2014-09, <i>Revenue from Contracts with Customers (Topic 606).  </i>Under the ASU, revenue
is recognized when a customer obtains control of promised services in an amount that reflects the consideration the entity expects
to receive in exchange for those services. In addition, the standard requires disclosure of the nature, amount, timing, and uncertainty
of revenue and cash flows arising from contracts with customers.  The Company applied the five-step method outlined in
the ASU to all revenue streams scoped-in by the ASU and elected the modified retrospective implementation method. Substantially
all of the Company’s interest income and certain non-interest income were not impacted by the adoption of this ASU because
either the revenue from those contracts with customers is covered by other guidance in U.S. GAAP or the revenue recognition outcomes
were similar to our current revenue recognition practices. We reviewed non-interest sources of income and related contracts to
document the impact of the new standard on our service offerings that are in the scope of the ASU including gains (losses) on sale
of OREOs. Upon our analysis we concluded that the adoption of the ASC 606 did not change the timing and pattern of revenue recognition
related to scoped in non-interest income source and only required additional disclosures. In addition, we reviewed, and where necessary,
enhanced our business processes, systems and controls to support recognition and disclosures under the new standard. The additional
disclosures required by the ASU have been included above.</p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i> </i></p>
<p style="margin: 0pt"></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>2. FAIR VALUE MEASUREMENT</b></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company measures certain financial instruments
at fair value in our balance sheets. The fair value of these instruments is based on valuations that include inputs that can be
classified within one of the three levels of a hierarchy. Level 1 inputs include quoted market prices in an active market for identical
assets or liabilities. Level 2 inputs are market data, other than Level 1, that are observable either directly or indirectly. Level
2 inputs include quoted market prices for similar assets or liabilities, quoted market prices in an inactive market, and other
observable information that can be corroborated by market data. Level 3 inputs are unobservable and corroborated by little or no
market data.</p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Except for the bond portfolio, which is required
by authoritative accounting guidance to be recorded at fair value in our balance sheets, the Company elected not to record any
other financial assets or liabilities at fair value on a recurring basis. We recorded an aggregate other than temporary impairment
for losses on our Agape bonds (Note 3), which totaled $508,000 and $458,000 for the periods ended March 31, 2019 and December 31,
2018, respectively.</p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 12pt/115% Times New Roman, Times, Serif; margin: 0 0 10pt">The following table summarizes the Company’s financial
instruments that were measured at fair value on a recurring basis:</p>
<table cellspacing="0" cellpadding="0" style="width: 100%; font: 12pt Times New Roman, Times, Serif; border-collapse: collapse">
<tr style="vertical-align: top">
<td style="width: 34%; border: Black 1pt dotted; padding-right: 6pt; padding-left: 6pt"> </td>
<td style="width: 38%; border-top: Black 1pt dotted; border-right: Black 1pt dotted; border-bottom: Black 1pt dotted; padding-right: 6pt; padding-left: 6pt; text-align: center"> </td>
<td style="width: 28%; border-top: Black 1pt dotted; border-right: Black 1pt dotted; border-bottom: Black 1pt dotted; padding-right: 6pt; padding-left: 6pt; text-align: center; layout-grid-mode: line; vertical-align: top">Fair Value Measurement</td></tr>
<tr style="vertical-align: top; background-color: rgb(204,238,255)">
<td style="border-right: Black 1pt dotted; border-bottom: Black 1pt dotted; border-left: Black 1pt dotted; padding-right: 6pt; padding-left: 6pt"><u>March 31, 2019</u></td>
<td style="border-right: Black 1pt dotted; border-bottom: Black 1pt dotted; padding-right: 6pt; padding-left: 6pt; text-align: center; vertical-align: middle"><u>Fair Value</u></td>
<td style="border-right: Black 1pt dotted; border-bottom: Black 1pt dotted; padding-right: 6pt; padding-left: 6pt; text-align: center; vertical-align: middle"><u>Level 3</u></td></tr>
<tr style="vertical-align: top; background-color: White">
<td style="border-right: Black 1pt dotted; border-bottom: Black 1pt dotted; border-left: Black 1pt dotted; padding-right: 6pt; padding-left: 6pt"> </td>
<td style="border-right: Black 1pt dotted; border-bottom: Black 1pt dotted; padding-right: 6pt; padding-left: 6pt; layout-grid-mode: line; text-align: right"><font style="text-underline-style: double"> </font></td>
<td style="border-right: Black 1pt dotted; border-bottom: Black 1pt dotted; padding-right: 6pt; padding-left: 6pt; layout-grid-mode: line; text-align: right"> </td></tr>
<tr style="vertical-align: top; background-color: rgb(204,238,255)">
<td style="border-right: Black 1pt dotted; border-bottom: Black 1pt dotted; border-left: Black 1pt dotted; padding-right: 6pt; padding-left: 6pt">Bond portfolio</td>
<td style="border-right: Black 1pt dotted; border-bottom: Black 1pt dotted; padding-right: 6pt; padding-left: 6pt; layout-grid-mode: line; text-align: center; vertical-align: middle">$<font style="text-underline-style: double"><u>16,202,937</u></font></td>
<td style="border-right: Black 1pt dotted; border-bottom: Black 1pt dotted; padding-right: 6pt; padding-left: 6pt; layout-grid-mode: line; text-align: center; vertical-align: middle">$<font style="text-underline-style: double"><u>16,202,937</u></font></td></tr>
</table>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0"> </p>
<table cellspacing="0" cellpadding="0" style="width: 100%; font: 12pt Times New Roman, Times, Serif; border-collapse: collapse">
<tr style="vertical-align: top; background-color: rgb(204,238,255)">
<td style="width: 34%; border: Black 1pt dotted; padding-right: 6pt; padding-left: 6pt"> </td>
<td style="width: 38%; border-top: Black 1pt dotted; border-right: Black 1pt dotted; border-bottom: Black 1pt dotted; padding-right: 6pt; padding-left: 6pt; text-align: center"> </td>
<td style="width: 28%; border-top: Black 1pt dotted; border-right: Black 1pt dotted; border-bottom: Black 1pt dotted; padding-right: 6pt; padding-left: 6pt; text-align: center; layout-grid-mode: line; vertical-align: top">Fair Value Measurement</td></tr>
<tr style="vertical-align: top; background-color: White">
<td style="border-right: Black 1pt dotted; border-bottom: Black 1pt dotted; border-left: Black 1pt dotted; padding-right: 6pt; padding-left: 6pt"><u>December 31, 2018</u></td>
<td style="border-right: Black 1pt dotted; border-bottom: Black 1pt dotted; padding-right: 6pt; padding-left: 6pt; text-align: center; vertical-align: top"><u>Fair Value</u></td>
<td style="border-right: Black 1pt dotted; border-bottom: Black 1pt dotted; padding-right: 6pt; padding-left: 6pt; text-align: center; vertical-align: top"><u>Level 3</u></td></tr>
<tr style="vertical-align: top; background-color: rgb(204,238,255)">
<td style="border-right: Black 1pt dotted; border-bottom: Black 1pt dotted; border-left: Black 1pt dotted; padding-right: 6pt; padding-left: 6pt"> </td>
<td style="border-right: Black 1pt dotted; border-bottom: Black 1pt dotted; padding-right: 6pt; padding-left: 6pt; layout-grid-mode: line; text-align: right"><font style="text-underline-style: double"> </font></td>
<td style="border-right: Black 1pt dotted; border-bottom: Black 1pt dotted; padding-right: 6pt; padding-left: 6pt; layout-grid-mode: line; text-align: right"> </td></tr>
<tr style="vertical-align: top; background-color: White">
<td style="border-right: Black 1pt dotted; border-bottom: Black 1pt dotted; border-left: Black 1pt dotted; padding-right: 6pt; padding-left: 6pt">Bond portfolio</td>
<td style="border-right: Black 1pt dotted; border-bottom: Black 1pt dotted; padding-right: 6pt; padding-left: 6pt; layout-grid-mode: line; text-align: center; vertical-align: top">$<font style="text-underline-style: double"><u>15,389,807</u></font></td>
<td style="border-right: Black 1pt dotted; border-bottom: Black 1pt dotted; padding-right: 6pt; padding-left: 6pt; layout-grid-mode: line; text-align: center; vertical-align: top">$<font style="text-underline-style: double"><u>15,389,807</u></font></td></tr>
</table>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">We determine the fair value of the bond portfolio
shown in the table above by comparing it with similar instruments in inactive markets. The analysis reflects the contractual terms
of the bonds, which are callable at par by the issuer at any time, and the anticipated cash flows of the bonds and uses observable
and unobservable market-based inputs. Unobservable inputs include our internal credit rating and selection of similar bonds for
valuation.</p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 12pt/115% Times New Roman, Times, Serif; margin: 0 0 10pt">The change in Level 3 assets measured at fair value
on a recurring basis is summarized as follows:</p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 12pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 1pt; padding-left: 6pt"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"><u>Bond Portfolio</u></td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-left: 6pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 70%; padding-left: 6pt">Balance at December 31, 2018</td><td style="width: 10%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 18%; text-align: right">15,389,807</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-left: 6pt">Additional losses on bond portfolio</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(50,000</td><td style="text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 6pt">Purchases</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">895,000</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-bottom: 1pt; padding-left: 6pt">Proceeds</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(31,870</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 2.5pt; padding-left: 6pt">Balance at March 31, 2019</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">16,202,937</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
</table>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Real estate held for sale and impaired loans
are recorded at fair value on a nonrecurring basis. The fair value of real estate held for sale was based upon the listed sales
price less expected selling costs, which is a Level 3 input. The resulting impairment charges were $0 and $114,787 for the periods
ended March 31, 2019 and December 31, 2018, respectively.</p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 12pt/115% Times New Roman, Times, Serif; margin: 0 0 10pt">The following table summarizes the Company’s financial
instruments that were measured at fair value on a nonrecurring basis:</p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 12pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td> </td><td style="padding-bottom: 1pt"> </td>
<td colspan="15" style="text-align: center; border-bottom: Black 1pt solid">March 31, 2019</td></tr>
<tr style="vertical-align: bottom">
<td> </td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">Level 1</td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">Level 2</td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">Level 3</td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">Fair Value at March 31, <br />2019</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 40%; text-align: left; padding-left: 5.4pt">Impaired Loans</td><td style="width: 3%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 10%; text-align: right">—  </td><td style="width: 1%; text-align: left"> </td><td style="width: 3%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 10%; text-align: right">—  </td><td style="width: 1%; text-align: left"> </td><td style="width: 3%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 10%; text-align: right">608,139</td><td style="width: 1%; text-align: left"> </td><td style="width: 3%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 10%; text-align: right">608,139</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 1pt; padding-left: 5.4pt">Real estate held for resale</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">—  </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">—  </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">327,925</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">327,925</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 2.5pt; padding-left: 5.4pt"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">—  </td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">—  </td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">936,064</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">936,064</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
</table>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0"> </p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 12pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td> </td><td style="padding-bottom: 1pt"> </td>
<td colspan="15" style="text-align: center; border-bottom: Black 1pt solid">December 31, 2018</td></tr>
<tr style="vertical-align: bottom">
<td> </td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">Level 1</td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">Level 2</td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">Level 3</td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">Fair Value at December 31, <br />2018</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 40%; text-align: left; padding-left: 5.4pt">Impaired Loans</td><td style="width: 3%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 10%; text-align: right">—  </td><td style="width: 1%; text-align: left"> </td><td style="width: 3%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 10%; text-align: right">—  </td><td style="width: 1%; text-align: left"> </td><td style="width: 3%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 10%; text-align: right">608,139</td><td style="width: 1%; text-align: left"> </td><td style="width: 3%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 10%; text-align: right">608,139</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 1pt; padding-left: 5.4pt">Real estate held for resale</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">—  </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">—  </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">327,925</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">327,925</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 2.5pt; padding-left: 5.4pt"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">—  </td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">—  </td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">936,064</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">936,064</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
</table>
<p style="font: 12pt/50% Times New Roman, Times, Serif; margin: 0 0 10pt"> </p>
<p style="font: 12pt/115% Times New Roman, Times, Serif; margin: 0 0 10pt"> </p>
<p style="font: 12pt/50% Times New Roman, Times, Serif; margin: 0 0 10pt"> </p>
<p style="font: 12pt/115% Times New Roman, Times, Serif; margin: 0 0 10pt">The change in Level 3 assets measured at fair value
on a nonrecurring basis is summarized as follows:</p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 12pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"> </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"><u>Impaired Loans</u></td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"><u>Real Estate Held for Sale</u></td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 1%; text-align: left"> </td><td style="width: 31%; text-align: left; vertical-align: top">Balance at December 31, 2018</td><td style="width: 2%; text-align: left"> </td><td style="width: 2%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 26%; text-align: right">665,267</td><td style="width: 1%; text-align: left"> </td><td style="width: 8%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 26%; text-align: right">340,659</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left"> </td><td style="text-align: left; vertical-align: middle">Additions/Acquisitions</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left"> </td><td style="text-align: left; vertical-align: middle">Dispositions/Proceeds</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(45,828</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(12,734</td><td style="text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: left; vertical-align: middle">Impairment</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(11,300</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">—  </td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: left; vertical-align: middle">Balance at March 31, 2019</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">608,139</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">327,925</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
</table>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The fair value of impaired loans referenced
above was determined by obtaining independent third party appraisals and/or internally developed collateral valuations to support
the Company’s estimates and judgments in determining the fair value of the underlying collateral supporting impaired loans.</p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The fair value of real estate held for resale
referenced above was determined by obtaining market price valuations from independent third parties wherever such quotes were available
for the other collateral owned. The company utilized independent third party appraisal to support the Company’s estimates
and judgments in determining fair value for other real estate owned.</p>
<p style="margin: 0pt"></p>
<table cellspacing="0" cellpadding="0" style="width: 100%; font: 12pt Times New Roman, Times, Serif; border-collapse: collapse">
<tr style="vertical-align: top; background-color: rgb(204,238,255)">
<td style="width: 34%; border: Black 1pt dotted; padding-right: 6pt; padding-left: 6pt"> </td>
<td style="width: 38%; border-top: Black 1pt dotted; border-right: Black 1pt dotted; border-bottom: Black 1pt dotted; padding-right: 6pt; padding-left: 6pt; text-align: center"> </td>
<td style="width: 28%; border-top: Black 1pt dotted; border-right: Black 1pt dotted; border-bottom: Black 1pt dotted; padding-right: 6pt; padding-left: 6pt; text-align: center; layout-grid-mode: line; vertical-align: top">Fair Value Measurement</td></tr>
<tr style="vertical-align: top; background-color: White">
<td style="border-right: Black 1pt dotted; border-bottom: Black 1pt dotted; border-left: Black 1pt dotted; padding-right: 6pt; padding-left: 6pt"><u>March 31, 2019</u></td>
<td style="border-right: Black 1pt dotted; border-bottom: Black 1pt dotted; padding-right: 6pt; padding-left: 6pt; text-align: center; vertical-align: top"><u>Fair Value</u></td>
<td style="border-right: Black 1pt dotted; border-bottom: Black 1pt dotted; padding-right: 6pt; padding-left: 6pt; text-align: center; vertical-align: top"><u>Level 3</u></td></tr>
<tr style="vertical-align: top; background-color: rgb(204,238,255)">
<td style="border-right: Black 1pt dotted; border-bottom: Black 1pt dotted; border-left: Black 1pt dotted; padding-right: 6pt; padding-left: 6pt"> </td>
<td style="border-right: Black 1pt dotted; border-bottom: Black 1pt dotted; padding-right: 6pt; padding-left: 6pt; layout-grid-mode: line; text-align: right"><font style="text-underline-style: double"> </font></td>
<td style="border-right: Black 1pt dotted; border-bottom: Black 1pt dotted; padding-right: 6pt; padding-left: 6pt; layout-grid-mode: line; text-align: right"> </td></tr>
<tr style="vertical-align: top; background-color: White">
<td style="border-right: Black 1pt dotted; border-bottom: Black 1pt dotted; border-left: Black 1pt dotted; padding-right: 6pt; padding-left: 6pt">Bond portfolio</td>
<td style="border-right: Black 1pt dotted; border-bottom: Black 1pt dotted; padding-right: 6pt; padding-left: 6pt; layout-grid-mode: line; text-align: right">$<font style="text-underline-style: double"><u>16,202,937</u></font></td>
<td style="border-right: Black 1pt dotted; border-bottom: Black 1pt dotted; padding-right: 6pt; padding-left: 6pt; layout-grid-mode: line; text-align: right">$<font style="text-underline-style: double"><u>16,202,937</u></font></td></tr>
</table>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0"> </p>
<table cellspacing="0" cellpadding="0" style="width: 100%; font: 12pt Times New Roman, Times, Serif; border-collapse: collapse">
<tr style="vertical-align: top; background-color: rgb(204,238,255)">
<td style="width: 34%; border: Black 1pt dotted; padding-right: 6pt; padding-left: 6pt"> </td>
<td style="width: 38%; border-top: Black 1pt dotted; border-right: Black 1pt dotted; border-bottom: Black 1pt dotted; padding-right: 6pt; padding-left: 6pt; text-align: center"> </td>
<td style="width: 28%; border-top: Black 1pt dotted; border-right: Black 1pt dotted; border-bottom: Black 1pt dotted; padding-right: 6pt; padding-left: 6pt; text-align: center; layout-grid-mode: line; vertical-align: top">Fair Value Measurement</td></tr>
<tr style="vertical-align: top; background-color: White">
<td style="border-right: Black 1pt dotted; border-bottom: Black 1pt dotted; border-left: Black 1pt dotted; padding-right: 6pt; padding-left: 6pt"><u>December 31, 2018</u></td>
<td style="border-right: Black 1pt dotted; border-bottom: Black 1pt dotted; padding-right: 6pt; padding-left: 6pt; text-align: center; vertical-align: top"><u>Fair Value</u></td>
<td style="border-right: Black 1pt dotted; border-bottom: Black 1pt dotted; padding-right: 6pt; padding-left: 6pt; text-align: center; vertical-align: top"><u>Level 3</u></td></tr>
<tr style="vertical-align: top; background-color: rgb(204,238,255)">
<td style="border-right: Black 1pt dotted; border-bottom: Black 1pt dotted; border-left: Black 1pt dotted; padding-right: 6pt; padding-left: 6pt"> </td>
<td style="border-right: Black 1pt dotted; border-bottom: Black 1pt dotted; padding-right: 6pt; padding-left: 6pt; layout-grid-mode: line; text-align: right"><font style="text-underline-style: double"> </font></td>
<td style="border-right: Black 1pt dotted; border-bottom: Black 1pt dotted; padding-right: 6pt; padding-left: 6pt; layout-grid-mode: line; text-align: right"> </td></tr>
<tr style="vertical-align: top; background-color: White">
<td style="border-right: Black 1pt dotted; border-bottom: Black 1pt dotted; border-left: Black 1pt dotted; padding-right: 6pt; padding-left: 6pt">Bond portfolio</td>
<td style="border-right: Black 1pt dotted; border-bottom: Black 1pt dotted; padding-right: 6pt; padding-left: 6pt; layout-grid-mode: line; text-align: right">$<font style="text-underline-style: double"><u>15,389,807</u></font></td>
<td style="border-right: Black 1pt dotted; border-bottom: Black 1pt dotted; padding-right: 6pt; padding-left: 6pt; layout-grid-mode: line; text-align: right">$<font style="text-underline-style: double"><u>15,389,807</u></font></td></tr>
</table>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 12pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 1pt; padding-left: 6pt"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"><u>Bond Portfolio</u></td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-left: 6pt"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 70%; padding-left: 6pt">Balance at December 31, 2018</td><td style="width: 10%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 18%; text-align: right">15,389,807</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-left: 6pt">Additional losses on bond portfolio</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(50,000</td><td style="text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-left: 6pt">Purchases</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">895,000</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="padding-bottom: 1pt; padding-left: 6pt">Proceeds</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(31,870</td><td style="padding-bottom: 1pt; text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 2.5pt; padding-left: 6pt">Balance at March 31, 2019</td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">16,202,937</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
</table>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 12pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td> </td><td style="padding-bottom: 1pt"> </td>
<td colspan="15" style="text-align: center; border-bottom: Black 1pt solid">March 31, 2019</td></tr>
<tr style="vertical-align: bottom">
<td> </td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">Level 1</td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">Level 2</td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">Level 3</td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">Fair Value at March 31, <br />2019</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 40%; text-align: left; padding-left: 5.4pt">Impaired Loans</td><td style="width: 3%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 10%; text-align: right">—  </td><td style="width: 1%; text-align: left"> </td><td style="width: 3%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 10%; text-align: right">—  </td><td style="width: 1%; text-align: left"> </td><td style="width: 3%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 10%; text-align: right">608,139</td><td style="width: 1%; text-align: left"> </td><td style="width: 3%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 10%; text-align: right">608,139</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 1pt; padding-left: 5.4pt">Real estate held for resale</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">—  </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">—  </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">327,925</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">327,925</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 2.5pt; padding-left: 5.4pt"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">—  </td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">—  </td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">936,064</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">936,064</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
</table>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="font: 8pt Times New Roman, Times, Serif; margin: 0"> </p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 12pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td> </td><td style="padding-bottom: 1pt"> </td>
<td colspan="15" style="text-align: center; border-bottom: Black 1pt solid">December 31, 2018</td></tr>
<tr style="vertical-align: bottom">
<td> </td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">Level 1</td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">Level 2</td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">Level 3</td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">Fair Value at December 31, <br />2018</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 40%; text-align: left; padding-left: 5.4pt">Impaired Loans</td><td style="width: 3%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 10%; text-align: right">—  </td><td style="width: 1%; text-align: left"> </td><td style="width: 3%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 10%; text-align: right">—  </td><td style="width: 1%; text-align: left"> </td><td style="width: 3%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 10%; text-align: right">608,139</td><td style="width: 1%; text-align: left"> </td><td style="width: 3%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 10%; text-align: right">608,139</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-bottom: 1pt; padding-left: 5.4pt">Real estate held for resale</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">—  </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">—  </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">327,925</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">327,925</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="padding-bottom: 2.5pt; padding-left: 5.4pt"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">—  </td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">—  </td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">936,064</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">936,064</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
</table>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 12pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"> </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"><u>Impaired Loans</u></td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"><u>Real Estate Held for Sale</u></td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 1%; text-align: left"> </td><td style="width: 31%; text-align: left; vertical-align: middle">Balance at December 31, 2018</td><td style="width: 1%; text-align: left"> </td><td style="width: 3%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 26%; text-align: right">665,267</td><td style="width: 1%; text-align: left"> </td><td style="width: 8%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 26%; text-align: right">340,659</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left"> </td><td style="text-align: left; vertical-align: middle">Additions/Acquisitions</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">—  </td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left"> </td><td style="text-align: left; vertical-align: middle">Dispositions/Proceeds</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(45,828</td><td style="text-align: left">)</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(12,734</td><td style="text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: left; vertical-align: middle">Impairment</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">(11,300</td><td style="padding-bottom: 1pt; text-align: left">)</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">—  </td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: left; vertical-align: middle">Balance at March 31, 2019</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">608,139</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">327,925</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
</table>
16202937
15389807
16202937
15389807
895000
-31870
-50000
608139
665267
608139
665267
327925
340659
327925
340659
936064
1005926
936064
1005926
665267
340659
-45828
-12734
-11300
608139
327925
508000
458000
114787
<p style="margin: 0pt"></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>3. MORTGAGE LOANS RECEIVABLE AND BOND PORTFOLIO</b></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">At March 21, 2019, the Company had first mortgage
loans receivable totaling $21,990,821. The loans bear interest ranging from 0% to 10.25% with a weighted average of approximately
8.21% at March 31, 2019. At December 31, 2018, the Company had first mortgage loans receivable totaling $23,607,655. The loans
bear interest ranging from 0% to 10.25% with a weighted average of approximately 8.15% at December 31, 2018.</p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company has a portfolio of secured church
bonds at March 31, 2019 and December 31, 2018, which are carried at fair value. The bonds pay either semi-annual or quarterly interest
ranging from 3.50% to 9.75%. The aggregate par value of secured church bonds equaled approximately $16,728,598 at March 31, 2019
with a weighted average interest rate of 6.85% and approximately $15,847,807 at December 31, 2018 with a weighted average interest
rate of 6.80%. These bonds are due at various maturity dates through February 2047. The Company has recorded an aggregate other
than temporary impairment of $508,000 and $458,000 for March 31, 2019 and December 31, 2018, respectively for the First Mortgage
Bonds issued by Agape Assembly Baptist Church. This bond series in the aggregate constitute approximately 6.13% and 6.47% of the
bond portfolio at March 31, 2019 and December 31, 2018, respectively. The Company had maturities and redemptions of bonds of approximately
$84,000 and $723,000 in 2019 and 2018, respectively.</p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="letter-spacing: -0.1pt"> </font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="letter-spacing: -0.1pt"> </font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="letter-spacing: -0.1pt"> </font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="letter-spacing: -0.1pt"> </font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="letter-spacing: -0.1pt">The contractual
maturity schedule for mortgage loans receivable and the bond portfolio as of March 31, 2019, is as follows:</font></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><font style="letter-spacing: -0.1pt"> </font></p>
<table cellspacing="0" cellpadding="0" style="width: 100%; font: 12pt Times New Roman, Times, Serif; border-collapse: collapse">
<tr style="vertical-align: top; background-color: rgb(204,238,255)">
<td style="width: 53%; padding-right: 5.4pt; padding-left: 5.4pt"> </td>
<td style="width: 26%; padding-right: 5.4pt; padding-left: 5.4pt; layout-grid-mode: line; text-align: right"><u>Mortgage Loans</u></td>
<td style="width: 21%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><u>Bond Portfolio</u></td></tr>
<tr style="vertical-align: top; background-color: White">
<td style="padding-right: 5.4pt; padding-left: 5.4pt"> </td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; layout-grid-mode: line; text-align: right"> </td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"> </td></tr>
<tr style="vertical-align: top; background-color: rgb(204,238,255)">
<td style="padding-right: 5.4pt; padding-left: 5.4pt">2020</td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; layout-grid-mode: line; text-align: right">$    1,174,635</td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">$    219,000</td></tr>
<tr style="vertical-align: top; background-color: White">
<td style="padding-right: 5.4pt; padding-left: 5.4pt">2021</td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">744,013</td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">172,000</td></tr>
<tr style="vertical-align: top; background-color: rgb(204,238,255)">
<td style="padding-right: 5.4pt; padding-left: 5.4pt">2022</td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">744,674</td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">270,000</td></tr>
<tr style="vertical-align: top; background-color: White">
<td style="padding-right: 5.4pt; padding-left: 5.4pt">2023</td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">1,547,946</td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">192,000</td></tr>
<tr style="vertical-align: top; background-color: rgb(204,238,255)">
<td style="padding-right: 5.4pt; padding-left: 5.4pt">2024</td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; layout-grid-mode: line; text-align: right">914,549</td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; layout-grid-mode: line; text-align: right">295,000</td></tr>
<tr style="vertical-align: top; background-color: White">
<td style="padding-right: 5.4pt; padding-left: 5.4pt">Thereafter</td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; layout-grid-mode: line; text-align: right"><u>16,865,004</u></td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; layout-grid-mode: line; text-align: right"><u>15,562,937</u></td></tr>
<tr style="vertical-align: top; background-color: rgb(204,238,255)">
<td style="padding-right: 5.4pt; padding-left: 5.4pt">            </td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">21,990,821</td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"> 16,710,937</td></tr>
<tr style="background-color: White">
<td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt">Less loan loss and other than temporary impairment on bonds allowance</td>
<td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">(1,589,744)</td>
<td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">  (508,000)</td></tr>
<tr style="vertical-align: top; background-color: rgb(204,238,255)">
<td style="padding-right: 5.4pt; padding-left: 5.4pt">Less deferred origination income</td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; layout-grid-mode: line; text-align: right"><u>    (271,913</u>)</td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; layout-grid-mode: line; text-align: right"><u>___-____</u></td></tr>
<tr style="vertical-align: top; background-color: White">
<td style="padding-right: 5.4pt; padding-left: 5.4pt">            Totals</td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; layout-grid-mode: line; text-align: right">$<font style="text-underline-style: double"><u>20,129,164</u></font></td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; layout-grid-mode: line; text-align: right">$<font style="text-underline-style: double"><u>16,202,937</u></font></td></tr>
</table>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company currently owns $529,000 First Mortgage
Bonds and $497,000 Second Mortgage Bonds issued by Agape Assembly Baptist Church located in Orlando, Florida. The total principal
amount of First Mortgage Bonds issued by Agape is $7,200,000, and the total principal amount of Second Mortgage Bonds issued is
$715,000. Agape defaulted on its payment obligations to bondholders in September 2010. The church subsequently commenced a Chapter
11 bankruptcy reorganization proceeding regarding the property that secures the First Mortgage Bonds in December 2010. In October
2014, a minimum of 80% of the bondholders of Agape agreed to a modification in the terms of their bonds which resulted in the temporary
resumption of both principal and interest payments to both the first and second mortgage bond holders. Both the First Mortgage
Bonds and Second Mortgage Bonds were modified to a fully amortized fixed rate, quarterly interest payment of 6.25% with a new maturity
date of September 2037 for all the issued and outstanding bonds. The Company, along with all other bondholders, has a superior
lien over all other creditors. The Church subsequently defaulted on their modification agreement in 2016 and no interest payments
were made to bondholders during the year ended December 31, 2018. However, the trustee made a distribution to bondholders during
2017 of $18.75 per $1,000 bond as a repayment of principal only, effectively reducing the outstanding balance of each $1,000 bond
to approximately $826. The Company has an aggregate other than temporary impairment of $508,000 and $458,000 for the First and
Second Mortgage Bonds at March 31, 2019 and December 31, 2018, respectively, which effectively reduces the bonds to the fair value
amount management believes will be recovered.</p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company restructured two mortgage loans
during the year ended December 31, 2018. The first restructured loan was a $669,544 first mortgage loan located in Indianapolis,
Indiana. The Church was unable to meet its monthly debt obligations. The Company reduced the Church’s monthly mortgage obligation
to interest only payments for a period of three years. After the initial three-year period, the Church will resume its regular
monthly mortgage payments. The Church accepted the restructured loan terms. The modification had no effect on the Company’s
financial statements.</p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The second restructured loan was a $470,000
first mortgage loan located in Cincinnati, Ohio. The Church was unable to meet its monthly debt obligations. The Company reduced
the Church’s monthly mortgage obligation to interest only for a period of three years which included a reduction in their
interest rate. After the initial three-year term, the rate of interest will increase for an additional three-year period. At the
end of the sixth year, the Church will resume its regular monthly mortgage payments at the original rate of interest. The Church
accepted the restructured loan terms. The modification had no effect on the Company’s financial statements.</p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company did not restructure any
loans during the three month period ended March 31, 2019. A summary of loans re-structured or modified for the years ended
December 31, 2018 are shown below. All of the loans shown are currently performing under the terms of the modifications for
their mortgage obligations.</p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="width: 100%; font: 12pt Times New Roman, Times, Serif; border-collapse: collapse">
<tr style="vertical-align: top; background-color: rgb(204,238,255)">
<td style="border: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify"> </td>
<td colspan="5" style="border-top: Black 1pt solid; border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><b>March 31, 2019</b></td></tr>
<tr style="vertical-align: top; background-color: White">
<td style="width: 24%; border-right: Black 1pt solid; border-bottom: Black 1pt solid; border-left: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify"> </td>
<td style="width: 12%; border-bottom: Black 1pt solid; border-right: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify"> </td>
<td style="width: 18%; border-bottom: Black 1pt solid; border-right: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify"> </td>
<td style="width: 14%; border-bottom: Black 1pt solid; border-right: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify"> </td>
<td style="width: 17%; border-bottom: Black 1pt solid; border-right: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify"> </td>
<td style="width: 15%; border-bottom: Black 1pt solid; border-right: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify"> </td></tr>
<tr style="vertical-align: top; background-color: rgb(204,238,255)">
<td style="border-right: Black 1pt solid; border-bottom: Black 1pt solid; border-left: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">Type of Loan</td>
<td style="border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">Number of Loans</td>
<td style="border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">Original Principal Balance</td>
<td style="border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">Original Average Interest Rate</td>
<td style="border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">Unpaid Principal Balance</td>
<td style="border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">Modified Average Interest Rate</td></tr>
<tr style="vertical-align: top; background-color: White">
<td style="border-right: Black 1pt solid; border-bottom: Black 1pt solid; border-left: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">First Mortgage Loan</td>
<td style="border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">7</td>
<td style="border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">$4,415,544</td>
<td style="border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">8.014%</td>
<td style="border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">$3,444,462</td>
<td style="border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">6.03%</td></tr>
<tr style="vertical-align: top; background-color: rgb(204,238,255)">
<td style="border-right: Black 1pt solid; border-bottom: Black 1pt solid; border-left: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify"> </td>
<td style="border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify"> </td>
<td style="border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify"> </td>
<td style="border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify"> </td>
<td style="border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify"> </td>
<td style="border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify"> </td></tr>
</table>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellspacing="0" cellpadding="0" style="width: 100%; font: 12pt Times New Roman, Times, Serif; border-collapse: collapse">
<tr style="vertical-align: top; background-color: rgb(204,238,255)">
<td style="border: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify"> </td>
<td colspan="5" style="border-top: Black 1pt solid; border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center"><b>December 31, 2018</b></td></tr>
<tr style="vertical-align: top; background-color: White">
<td style="width: 24%; border-right: Black 1pt solid; border-bottom: Black 1pt solid; border-left: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify"> </td>
<td style="width: 12%; border-bottom: Black 1pt solid; border-right: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify"> </td>
<td style="width: 18%; border-bottom: Black 1pt solid; border-right: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify"> </td>
<td style="width: 14%; border-bottom: Black 1pt solid; border-right: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify"> </td>
<td style="width: 17%; border-bottom: Black 1pt solid; border-right: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify"> </td>
<td style="width: 15%; border-bottom: Black 1pt solid; border-right: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify"> </td></tr>
<tr style="vertical-align: top; background-color: rgb(204,238,255)">
<td style="border-right: Black 1pt solid; border-bottom: Black 1pt solid; border-left: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">Type of Loan</td>
<td style="border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">Number of Loans</td>
<td style="border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">Original Principal Balance</td>
<td style="border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">Original Average Interest Rate</td>
<td style="border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">Unpaid Principal Balance</td>
<td style="border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">Modified Average Interest Rate</td></tr>
<tr style="vertical-align: top; background-color: White">
<td style="border-right: Black 1pt solid; border-bottom: Black 1pt solid; border-left: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">First Mortgage Loan</td>
<td style="border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">7</td>
<td style="border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">$4,415,544</td>
<td style="border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">8.014%</td>
<td style="border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">$3,838,819</td>
<td style="border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: center">6.03%</td></tr>
<tr style="vertical-align: top; background-color: rgb(204,238,255)">
<td style="border-right: Black 1pt solid; border-bottom: Black 1pt solid; border-left: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify"> </td>
<td style="border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify"> </td>
<td style="border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify"> </td>
<td style="border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify"> </td>
<td style="border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify"> </td>
<td style="border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify"> </td></tr>
</table>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="margin: 0pt"></p>
<table cellspacing="0" cellpadding="0" style="width: 100%; font: 12pt Times New Roman, Times, Serif; border-collapse: collapse">
<tr style="vertical-align: top; background-color: rgb(204,238,255)">
<td style="width: 53%; padding-right: 5.4pt; padding-left: 5.4pt"> </td>
<td style="width: 26%; padding-right: 5.4pt; padding-left: 5.4pt; layout-grid-mode: line; text-align: right"><u>Mortgage Loans</u></td>
<td style="width: 21%; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"><u>Bond Portfolio</u></td></tr>
<tr style="vertical-align: top; background-color: White">
<td style="padding-right: 5.4pt; padding-left: 5.4pt"> </td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; layout-grid-mode: line; text-align: right"> </td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"> </td></tr>
<tr style="vertical-align: top; background-color: rgb(204,238,255)">
<td style="padding-right: 5.4pt; padding-left: 5.4pt">2020</td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; layout-grid-mode: line; text-align: right">$    1,174,635</td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">$    219,000</td></tr>
<tr style="vertical-align: top; background-color: White">
<td style="padding-right: 5.4pt; padding-left: 5.4pt">2021</td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">744,013</td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">172,000</td></tr>
<tr style="vertical-align: top; background-color: rgb(204,238,255)">
<td style="padding-right: 5.4pt; padding-left: 5.4pt">2022</td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">744,674</td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">270,000</td></tr>
<tr style="vertical-align: top; background-color: White">
<td style="padding-right: 5.4pt; padding-left: 5.4pt">2023</td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">1,547,946</td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">192,000</td></tr>
<tr style="vertical-align: top; background-color: rgb(204,238,255)">
<td style="padding-right: 5.4pt; padding-left: 5.4pt">2024</td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; layout-grid-mode: line; text-align: right">914,549</td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; layout-grid-mode: line; text-align: right">295,000</td></tr>
<tr style="vertical-align: top; background-color: White">
<td style="padding-right: 5.4pt; padding-left: 5.4pt">Thereafter</td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; layout-grid-mode: line; text-align: right"><u>16,865,004</u></td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; layout-grid-mode: line; text-align: right"><u>15,562,937</u></td></tr>
<tr style="vertical-align: top; background-color: rgb(204,238,255)">
<td style="padding-right: 5.4pt; padding-left: 5.4pt">            </td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">21,990,821</td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; text-align: right"> 16,710,937</td></tr>
<tr style="background-color: White">
<td style="vertical-align: top; padding-right: 5.4pt; padding-left: 5.4pt">Less loan loss and other than temporary impairment on bonds allowance</td>
<td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">(1,589,744)</td>
<td style="vertical-align: bottom; padding-right: 5.4pt; padding-left: 5.4pt; text-align: right">  (508,000)</td></tr>
<tr style="vertical-align: top; background-color: rgb(204,238,255)">
<td style="padding-right: 5.4pt; padding-left: 5.4pt">Less deferred origination income</td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; layout-grid-mode: line; text-align: right"><u>    (271,913</u>)</td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; layout-grid-mode: line; text-align: right"><u>___-____</u></td></tr>
<tr style="vertical-align: top; background-color: White">
<td style="padding-right: 5.4pt; padding-left: 5.4pt">            Totals</td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; layout-grid-mode: line; text-align: right">$<font style="text-underline-style: double"><u>20,129,164</u></font></td>
<td style="padding-right: 5.4pt; padding-left: 5.4pt; layout-grid-mode: line; text-align: right">$<font style="text-underline-style: double"><u>16,202,937</u></font></td></tr>
</table>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 12pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td style="text-align: justify"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="19" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">March 31, 2019</td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"> </td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: justify"> </td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: justify"> </td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: justify"> </td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: justify"> </td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: justify"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 35%; text-align: center; padding-bottom: 1pt; padding-left: 5.4pt">Type of Loan</td><td style="width: 2%; padding-bottom: 1pt"> </td>
<td style="width: 1%; border-bottom: Black 1pt solid; text-align: left"> </td><td style="width: 9%; border-bottom: Black 1pt solid; text-align: right">Number of Loans</td><td style="width: 1%; padding-bottom: 1pt; text-align: left"> </td><td style="width: 2%; padding-bottom: 1pt"> </td>
<td style="width: 1%; border-bottom: Black 1pt solid; text-align: left"> </td><td style="width: 9%; border-bottom: Black 1pt solid; text-align: right">Original Principal Balance</td><td style="width: 1%; padding-bottom: 1pt; text-align: left"> </td><td style="width: 2%; padding-bottom: 1pt"> </td>
<td style="width: 1%; border-bottom: Black 1pt solid; text-align: left"> </td><td style="width: 9%; border-bottom: Black 1pt solid; text-align: right">Original Average Interest Rate</td><td style="width: 1%; padding-bottom: 1pt; text-align: left"> </td><td style="width: 2%; padding-bottom: 1pt"> </td>
<td style="width: 1%; border-bottom: Black 1pt solid; text-align: left"> </td><td style="width: 9%; border-bottom: Black 1pt solid; text-align: right">Unpaid Principal Balance</td><td style="width: 1%; padding-bottom: 1pt; text-align: left"> </td><td style="width: 2%; padding-bottom: 1pt"> </td>
<td style="width: 1%; border-bottom: Black 1pt solid; text-align: left"> </td><td style="width: 9%; border-bottom: Black 1pt solid; text-align: right">Modified Average Interest Rate</td><td style="width: 1%; padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: center; padding-bottom: 1pt; padding-left: 5.4pt">First Mortgage Loan</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">7</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left">$</td><td style="border-bottom: Black 1pt solid; text-align: right">4,415,544</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">8.014</td><td style="padding-bottom: 1pt; text-align: left">%</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left">$</td><td style="border-bottom: Black 1pt solid; text-align: right">3,444,462</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">6.03</td><td style="padding-bottom: 1pt; text-align: left">%</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: justify; padding-bottom: 1pt; padding-left: 5.4pt"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"> </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"> </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"> </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"> </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"> </td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
</table>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 12pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td style="text-align: justify"> </td><td style="font-weight: bold; padding-bottom: 1pt"> </td>
<td colspan="19" style="font-weight: bold; text-align: center; border-bottom: Black 1pt solid">December 31, 2018</td></tr>
<tr style="vertical-align: bottom">
<td style="text-align: justify"> </td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: justify"> </td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: justify"> </td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: justify"> </td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: justify"> </td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: justify"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 35%; text-align: center; padding-bottom: 1pt; padding-left: 5.4pt">Type of Loan</td><td style="width: 2%; padding-bottom: 1pt"> </td>
<td style="width: 1%; border-bottom: Black 1pt solid; text-align: left"> </td><td style="width: 9%; border-bottom: Black 1pt solid; text-align: right">Number of Loans</td><td style="width: 1%; padding-bottom: 1pt; text-align: left"> </td><td style="width: 2%; padding-bottom: 1pt"> </td>
<td style="width: 1%; border-bottom: Black 1pt solid; text-align: left"> </td><td style="width: 9%; border-bottom: Black 1pt solid; text-align: right">Original Principal Balance</td><td style="width: 1%; padding-bottom: 1pt; text-align: left"> </td><td style="width: 2%; padding-bottom: 1pt"> </td>
<td style="width: 1%; border-bottom: Black 1pt solid; text-align: left"> </td><td style="width: 9%; border-bottom: Black 1pt solid; text-align: right">Original Average Interest Rate</td><td style="width: 1%; padding-bottom: 1pt; text-align: left"> </td><td style="width: 2%; padding-bottom: 1pt"> </td>
<td style="width: 1%; border-bottom: Black 1pt solid; text-align: left"> </td><td style="width: 9%; border-bottom: Black 1pt solid; text-align: right">Unpaid Principal Balance</td><td style="width: 1%; padding-bottom: 1pt; text-align: left"> </td><td style="width: 2%; padding-bottom: 1pt"> </td>
<td style="width: 1%; border-bottom: Black 1pt solid; text-align: left"> </td><td style="width: 9%; border-bottom: Black 1pt solid; text-align: right">Modified Average Interest Rate</td><td style="width: 1%; padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: center; padding-bottom: 1pt; padding-left: 5.4pt">First Mortgage Loan</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">7</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left">$</td><td style="border-bottom: Black 1pt solid; text-align: right">4,415,544</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">8.014</td><td style="padding-bottom: 1pt; text-align: left">%</td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left">$</td><td style="border-bottom: Black 1pt solid; text-align: right">3,838,819</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">6.03</td><td style="padding-bottom: 1pt; text-align: left">%</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: justify; padding-bottom: 1pt; padding-left: 5.4pt"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"> </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"> </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"> </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"> </td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right"> </td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
</table>
1174635
219000
744013
172000
744674
270000
1547946
192000
914549
295000
16865004
15562937
21990821
16710937
-1589744
-508000
-271913
20129164
16202937
7
7
4415544
4415544
8
8
3444462
3838819
6
6
21990821
23607655
16728598
15847807
508000
458000
529000
529000
497000
497000
7200000
7200000
715000
715000
19
19
826
826
84000
723000
1139544
1139544
<p style="margin: 0pt"></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>4. SECURED INVESTOR CERTIFICATES</b></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Secured investor certificates are collateralized
by certain mortgage loans receivable or secured church bonds of approximately the same value as the certificates. The weighted
average interest rate on the certificates was 6.33% and 6.35% at March 31, 2019 and December 31, 2018, respectively. Holders of
the secured investor certificates may renew certificates at the current rates and terms upon maturity at the Company’s discretion.
Renewals upon maturity are considered neither proceeds from nor issuance of secured investor certificates. Renewals totaled approximately
$220,000 and $1,671,000 at March 31, 2019 and December 31, 2018, respectively. The secured investor certificates have certain financial
and non-financial covenants identified in the respective series’ trust indentures.</p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The estimated maturity schedule for the secured
investor certificates at March 31, 2019 is as follows:</p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 12pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 1%; text-align: left"> </td><td style="width: 43%; text-align: left; vertical-align: middle">April 1, 2019 through March 31, 2020</td><td style="width: 1%; text-align: left"> </td><td style="width: 10%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 43%; text-align: right">2,780,000</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left"> </td><td style="text-align: left; vertical-align: middle">April 1, 2020 through December 31, 2020</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">3,078,000</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left"> </td><td style="text-align: left; vertical-align: middle">2021</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">2,378,000</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left"> </td><td style="text-align: left; vertical-align: middle">2022</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">2,164,000</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left"> </td><td style="text-align: left; vertical-align: middle">2023</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">2,511,000</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: left; vertical-align: middle">Thereafter</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">14,640,000</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">27,551,000</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left"> </td><td style="text-align: left; vertical-align: middle">Less deferred offering costs</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(880,142</td><td style="text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: left; vertical-align: middle">Totals</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">26,670,588</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
</table>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">In September 2017, the Company filed a registration
statement with the Securities and Exchange Commission to offer $10,000,000 worth of Series E secured investor certificates. The
offering was declared effective by the SEC on November 6, 2017. The certificates are being offered in multiples of $1,000 with
interest rates ranging from 4.00% to 6.50%, subject to changing market rates, and maturities from 5 to 15 years. The certificates
are collateralized by certain mortgage loan receivables and church bonds of approximately the same value. At March 31, 2019, approximately
3,187 Series E certificates had been issued and were outstanding for $3,187,000.</p>
<p style="margin: 0pt"></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 12pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 1%; text-align: left"> </td><td style="width: 43%; text-align: left; vertical-align: middle">April 1, 2019 through March 31, 2020</td><td style="width: 1%; text-align: left"> </td><td style="width: 10%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 43%; text-align: right">2,780,000</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left"> </td><td style="text-align: left; vertical-align: middle">April 1, 2020 through December 31, 2020</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">3,078,000</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left"> </td><td style="text-align: left; vertical-align: middle">2021</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">2,378,000</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left"> </td><td style="text-align: left; vertical-align: middle">2022</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">2,164,000</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left"> </td><td style="text-align: left; vertical-align: middle">2023</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">2,511,000</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: left; vertical-align: middle">Thereafter</td><td style="padding-bottom: 1pt; text-align: left"> </td><td style="padding-bottom: 1pt"> </td>
<td style="border-bottom: Black 1pt solid; text-align: left"> </td><td style="border-bottom: Black 1pt solid; text-align: right">14,640,000</td><td style="padding-bottom: 1pt; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left"> </td><td style="text-align: right"> </td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left">$</td><td style="text-align: right">27,551,000</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left"> </td><td style="text-align: left; vertical-align: middle">Less deferred offering costs</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">(880,142</td><td style="text-align: left">)</td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="border-bottom: Black 2.5pt double; text-align: left"> </td><td style="border-bottom: Black 2.5pt double; text-align: left; vertical-align: middle">Totals</td><td style="padding-bottom: 2.5pt; text-align: left"> </td><td style="padding-bottom: 2.5pt"> </td>
<td style="border-bottom: Black 2.5pt double; text-align: left">$</td><td style="border-bottom: Black 2.5pt double; text-align: right">26,670,588</td><td style="padding-bottom: 2.5pt; text-align: left"> </td></tr>
</table>
27551000
2780000
3078000
2378000
2164000
2511000
14460000
-880142
26670588
220000
1671000
10000000
1000
3187
3187000
<p style="margin: 0pt"></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>5. TRANSACTIONS WITH AFFILIATES</b></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company has an Advisory Agreement with
Church Loan Advisors, Inc. (the “Advisor”). The Advisor is responsible for the day-to-day operations of the Company
and provides office space and administrative services. The Advisor and the Company are related through common ownership and common
management. For its services, the Advisor is entitled to receive a management fee equal to 1.25% annually of the Company's Average
Invested Assets, plus one-half of any origination fee charged to borrowers on mortgage loans made by the Company. A majority of
the independent board members approve the Advisory Agreement on an annual basis. The Company paid the Advisor management and origination
fees of approximately $79,000 and $322,000 000 at March 31, 2019 and December 31, 2018, respectively.</p>
<p style="margin: 0pt"></p>
79000
322000
<p style="margin: 0pt"></p>
<p style="font: 12pt/115% Times New Roman, Times, Serif; margin: 0 0 10pt"><b>6. LINE OF CREDIT</b></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">On April 9, 2018, the Company
entered into a Loan and Security Agreement (the “Loan Agreement”) with Alerus Financial, N.A., as lender
(the “Lender”), and a Revolving Note (the “Note”) evidencing a $4,000,000 revolving loan
(the “Revolving Loan”). The Lender agrees to make loans to the Company from time to time and after the date of
the loan agreement and the Company may repay and re-borrow pursuant to the terms and conditions of the Revolving Loan as long
as no borrowing causes that dollar limit to be exceeded and the Company is not otherwise in default on the Revolving Loan.
The Revolving Loan is secured by a first priority security interest in substantially all of the Company’s assets other
than collateral pledged to secure the Company’s secured investor certificates, both those currently issued and
any potentially issued in the future. The Company borrowed against the line of credit during the three month period ended
March 31, 2019 and has re-paid the line in full as of March 31, 2019. The original maturity date of the Note is April 9, 2019
and the interest rate is the prevailing London Interbank Offering Rate (LIBOR) plus 2.70% adjusted monthly. The Company has
been in discussion with the Lender to extended the line of credit for another year.</p>
<p style="margin: 0pt"></p>
4000000
<p style="margin: 0pt"></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><b>7. FAIR VALUE OF FINANCIAL INSTRUMENTS</b></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The Company is required to disclose the fair
value information about financial instruments, where it is practicable to estimate that value. Because assumptions used in these
valuation techniques are inherently subjective in nature, the estimated fair values cannot always be substantiated by comparison
to independent market quotes and, in many cases, the estimated fair values could not necessarily be realized in an immediate sale
or settlement of the instrument.</p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The fair value estimates presented herein
are based on relevant information available to management as of March 31, 2019 and December 31, 2018,
respectively. Management is not aware of any factors that would significantly affect these estimated fair value amounts. As
these reporting requirements exclude certain financial instruments and all non-financial instruments, the aggregate fair
value amounts presented herein do not represent management’s estimate of the underlying value of the Company.</p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The estimated fair values of the Company’s
financial instruments, none of which are held for trading purposes, are as follows:</p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 12pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td> </td><td style="padding-bottom: 1pt"> </td>
<td colspan="7" style="text-align: center; border-bottom: Black 1pt solid">March 31, 2019</td><td style="padding-bottom: 1pt"> </td>
<td colspan="7" style="text-align: center; border-bottom: Black 1pt solid">December 31, 2018</td></tr>
<tr style="vertical-align: bottom">
<td> </td><td> </td>
<td colspan="3" style="text-align: center">Carrying</td><td> </td>
<td colspan="3" style="text-align: center">Fair</td><td> </td>
<td colspan="3" style="text-align: center">Carrying</td><td> </td>
<td colspan="3" style="text-align: center">Fair</td></tr>
<tr style="vertical-align: bottom">
<td> </td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">Amount</td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">Value</td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">Amount</td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">Value</td></tr>
<tr style="vertical-align: bottom">
<td> </td><td> </td>
<td colspan="3" style="text-align: right"> </td><td> </td>
<td colspan="3" style="text-align: right"> </td><td> </td>
<td colspan="3" style="text-align: right"> </td><td> </td>
<td colspan="3" style="text-align: right"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 40%; text-align: left; padding-left: 5.4pt">Cash and equivalents</td><td style="width: 3%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 10%; text-align: right">433,504</td><td style="width: 1%; text-align: left"> </td><td style="width: 3%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 10%; text-align: right">433,604</td><td style="width: 1%; text-align: left"> </td><td style="width: 3%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 10%; text-align: right">2,183,441</td><td style="width: 1%; text-align: left"> </td><td style="width: 3%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 10%; text-align: right">2,183,441</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-left: 5.4pt">Accounts receivable</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">253,639</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">253,639</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">251,535</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">251,535</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-left: 5.4pt">Interest receivable</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">189,694</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">189,694</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">184,869</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">184,869</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-left: 5.4pt">Mortgage loans receivable</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">21,990,821</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">23,401,582</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">23,607,655</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">23,905,564</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-left: 5.4pt">Bond portfolio</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">16,710,937</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">16,202,937</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">15,847,807</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">15,389,807</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-left: 5.4pt">Secured investor certificates</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">27,551,000</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">31,695,185</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">29,386,000</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">34,099,540</td><td style="text-align: left"> </td></tr>
</table>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The following methods and assumptions were
used by the Company to estimate the fair value of each class of financial instrument for which it is practicable to estimate that
value:</p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i>Cash and equivalents</i></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Due to their short-term nature, the carrying
amount of cash and cash equivalents approximates fair value and represents a level 1 measurement.</p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i>Accounts receivable</i></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i> </i></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Due to the short term nature, the carrying
amount of accounts receivable approximates fair value and represents a level 1 measurement.</p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">  </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i>Interest receivable</i></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">Due to the short term nature, the carrying
amount of interest receivable approximates fair value and represents a level 1 measurement.</p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i>Mortgage loans receivable</i></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The fair value of the mortgage loans receivable
is currently greater than the carrying value as the portfolio is currently yielding a higher rate than similar mortgages with similar
terms for borrowers with similar credit quality. The credit markets in which the Company conducts business have experienced an
increase in interest rates resulting in the fair value of the mortgage loans falling during the period ended March 31, 2019. The
fair value of loans is considered a level 3 measurement.</p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i> </i></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i>Bond portfolio</i></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">We determine the fair value of the bond portfolio
shown in the table above by comparing with similar instruments in inactive markets. The analysis reflects the contractual terms
of the bonds, which are callable at par by the issuer at any time, and the anticipated cash flows of the bonds and uses observable
and unobservable market-based inputs. Unobservable inputs include our internal credit rating and selection of similar bonds for
valuation. The fair value of bonds is considered a level 3 measurement.</p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i>Secured investor certificates</i></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify">The fair value of the secured investor certificates
is currently greater than the carrying value due to higher interest rates than current market rates. The fair value of secured
investor certificates is considered a level 3 measurement.</p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"><i> </i></p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0; text-align: justify"> </p>
<p style="font: 12pt Times New Roman, Times, Serif; margin: 0"> </p>
<p style="margin: 0pt"></p>
<table cellpadding="0" cellspacing="0" style="border-collapse: collapse; width: 100%; font: 12pt Times New Roman, Times, Serif">
<tr style="vertical-align: bottom">
<td> </td><td style="padding-bottom: 1pt"> </td>
<td colspan="7" style="text-align: center; border-bottom: Black 1pt solid">March 31, 2019</td><td style="padding-bottom: 1pt"> </td>
<td colspan="7" style="text-align: center; border-bottom: Black 1pt solid">December 31, 2018</td></tr>
<tr style="vertical-align: bottom">
<td> </td><td> </td>
<td colspan="3" style="text-align: center">Carrying</td><td> </td>
<td colspan="3" style="text-align: center">Fair</td><td> </td>
<td colspan="3" style="text-align: center">Carrying</td><td> </td>
<td colspan="3" style="text-align: center">Fair</td></tr>
<tr style="vertical-align: bottom">
<td> </td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">Amount</td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">Value</td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">Amount</td><td style="padding-bottom: 1pt"> </td>
<td colspan="3" style="text-align: center; border-bottom: Black 1pt solid">Value</td></tr>
<tr style="vertical-align: bottom">
<td> </td><td> </td>
<td colspan="3" style="text-align: right"> </td><td> </td>
<td colspan="3" style="text-align: right"> </td><td> </td>
<td colspan="3" style="text-align: right"> </td><td> </td>
<td colspan="3" style="text-align: right"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="width: 40%; text-align: left; padding-left: 5.4pt">Cash and equivalents</td><td style="width: 3%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 10%; text-align: right">433,504</td><td style="width: 1%; text-align: left"> </td><td style="width: 3%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 10%; text-align: right">433,604</td><td style="width: 1%; text-align: left"> </td><td style="width: 3%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 10%; text-align: right">2,183,441</td><td style="width: 1%; text-align: left"> </td><td style="width: 3%"> </td>
<td style="width: 1%; text-align: left">$</td><td style="width: 10%; text-align: right">2,183,441</td><td style="width: 1%; text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-left: 5.4pt">Accounts receivable</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">253,639</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">253,639</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">251,535</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">251,535</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-left: 5.4pt">Interest receivable</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">189,694</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">189,694</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">184,869</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">184,869</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-left: 5.4pt">Mortgage loans receivable</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">21,990,821</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">23,401,582</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">23,607,655</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">23,905,564</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: rgb(204,238,255)">
<td style="text-align: left; padding-left: 5.4pt">Bond portfolio</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">16,710,937</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">16,202,937</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">15,847,807</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">15,389,807</td><td style="text-align: left"> </td></tr>
<tr style="vertical-align: bottom; background-color: White">
<td style="text-align: left; padding-left: 5.4pt">Secured investor certificates</td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">27,551,000</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">31,695,185</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">29,386,000</td><td style="text-align: left"> </td><td> </td>
<td style="text-align: left"> </td><td style="text-align: right">34,099,540</td><td style="text-align: left"> </td></tr>
</table>
433504
2183441
433504
2183441
253639
251535
253639
251535
21990821
23607655
23401582
23905564
16710937
15847807
16202937
15389807
27551000
29386000
31695185
34099540